India Investment Guide

India permits 100% foreign equity in most industries. Companies setting up in export-processing zones or special economic zones, operating in electronic hardware or software technology parks, or operating as 100% export-oriented units also may be fully foreign owned.

Foreign direct investment (FDI) in India is approved through two routes: automatic and government approval. The automatic route is the simplest for foreign investors since companies do not need permission from the government or the Reserve Bank of India (RBI), the central bank, before investing, and documents need only be submitted ex-post facto to the RBI.

This Practical Guide from the Economist Intelligence Unit includes a checklist of document required for government approval of foreign investments.

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Olegario Llamazares

Economist, managing director of Global Marketing Strategies and founding partner of the website Global Negotiator. He specializes in international business with an emphasis on trade, marketing and negotiation.